For those exploring the idea or considering a switch in careers, the biggest question is always “is it worth it?”. In this article we walk you through the different duties and responsibilities of a financial advisor, and what’s in it for you. Let’s start with the biggest question, how much does a financial advisor make in the Philippines…
Financial Advisor’s Salary:
Being a financial advisor in the Philippines can pay really well with the benefit of having flexible hours as a wonderful perk of the business. Depending on the company they are associated with, a financial advisor’s income may or may not have a provided allowance. But they all definitely enjoy uncapped earnings from commissions. Life and health insurance plans have commission rates that can range from 20% to 60%. A common goal of a financial advisor is to earn P1,200,000 in a year to qualify for the prestigious title being part of the Million Dollar Round Table (MDRT). In 2015 the Philippines had the most number of MDRT financial advisors in South East Asia according to the Insurance Commissioner, Atty. Dennis B Funa.
On average a financial advisor earns P350,000 and can go all the way up from there. A financial advisor is actually one of the top 10 highest paying jobs in the Philippines. That being said, there is nothing such as easy money, being a financial advisor is still a job with responsibilities to carry out. But it’s not as hard as you think.
Financial Advisor Job Duties and Responsibilities:
1. Prospecting potential clients
Being a financial advisor will involve reaching out to contacts and networking. A large part of this job involves selling and is the ultimate way to earn commission. If this is new territory for you, no need to worry, because training is always provided. Knowing who to approach, what to say, and when to introduce your services will eventually come naturally.
2. Understanding a client’s financial goals
This discussion with clients will bring about confidential information on clients earnings and personal details about spending habits (good and bad). It is important to let the client know that you can be trusted and professional throughout the discussion. The financial advisor advocacy comes in with educating clients on the proper way to save and allocate for investments to prepare for future events; both seen and unforeseen. This discussion with them will include breaking down their spending and ensuring that a portion is set aside for goals they have set for themselves.
3. Matching your products to what will best suit the client’s needs.
With giving expert advice, product knowledge will be vital to achieving the best outcome for a client’s set goals. Understanding what each product has to offer at a minimum and its potential outcome will be very important.
4. Make certain that the client understands how a product works.
It is the responsibility of the financial advisor to educate the client on the risks and benefits involved in purchasing a specific plan. Each product type has a payment time frame that a client must commit to for his own benefit, and for the financial advisor to be able to receive his commissions also.
5. Monitoring accounts and administrative tasks.
Keeping track of client accounts and making recommendations if there is a shift in goals is part of the continued service you provide a client. There will be some forms that need to be updated in those instances, which can be done in person, online, or via courier.
6. After sales service and assistance if and when needed.
Similar to the previous item, there will be some after sales service that will be provided. Switching payment methods, changing beneficiaries, or updating signatures are simple transactions you will need to carry out. On rare occasions, assisting in collecting insured amounts when the unexpected death or illness happens would be the most crucial of all.
Financial Advisory Career Outlook:
As with any new career or business there will be challenges at the get go. But a slow start or a fully charged beginning does not dictate the success that will be achieved in this career. By using techniques taught during training and continuous application, those who have the grit will succeed. This pandemic has reminded people of the fragility of life and the importance of preparing for the unexpected. The insurance industry being almost 200 years old in the Philippines, proves that it’s here to stay and support the Filipino people through its financial advisors.